RBI is confident of exiting from ultra-loose monetary policy smoothly and ensuring a soft landing for the economy, said Governor Shakikanta Das at a banking event, the FE Modern BFSI Summit on June 17.
The governor "truly and sincerely" believes the Reserve Bank of India was in sync with the requirements of the economy, he said at an inaugural address at the FE Modern BFSI Summit.
In an event organised by the Financial Express newspaper, the RBI governor said that “If we had adopted a tighter policy, it would have been disastrous for an economy that contracted 6.6 pc in FY22.”
He added that RBI has not fallen behind the curve, we have been in line with the requirements of their time. Tolerance of high inflation during the pandemic was a necessity and the central bank stands by its decision.
“The process of coming out of an easy liquidity system takes a long time on factors beyond our control,” Das said.
Das continued, “Big technology companies' play in finance poses systemic concerns like overleverage. The RBI will soon be issuing guidelines to make the digital lending ecosystem safe and sound.”
He mentioned how certain unregulated, even a few unregulated organizations use unacceptable recovery methods without having adequate checks and controls over their recovery agents.
He stressed that such kind of actions by recovery agents are “unacceptable” and pose a reputational risk for financial entities themselves. The RBI governor said, “We have taken serious note of such instances and will not hesitate to act against such errant regulated entities.”